Photo courtesy of Yonhap News

 

 

[Alpha Biz= Paul Lee] South Korea’s antitrust regulator has imposed a corrective order on Dunamu, the operator of cryptocurrency exchange Upbit, for falsely advertising discounted trading fees.

The Korea Fair Trade Commission (KFTC) announced on March 25 that it had issued a corrective order against Dunamu for promoting its trading fee as being discounted from 0.139% to 0.05%.

According to the KFTC, Dunamu had never actually applied the 0.139% fee rate to standard transactions since the launch of the exchange, yet it advertised the lower 0.05% rate as if it were a discounted offer through notices posted on its website.

The company also described the discounted rate as temporary. However, Dunamu has consistently applied the 0.05% fee rate since inception, leading the regulator to conclude that the advertising constituted false or exaggerated claims in violation of Article 3(1) of the Act on Fair Labeling and Advertising.

The KFTC noted that only five notices related to the misleading discount were posted and that their viewership was minimal relative to total website traffic. Taking this into account, the regulator imposed only a corrective order prohibiting future violations.

 

 

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